StockStory Backs Alphabet, Reddit and Flags $1.01 Billion ACV Auctions as a Sell
Updated
Updated · stockstory.org · Jun 4
StockStory Backs Alphabet, Reddit and Flags $1.01 Billion ACV Auctions as a Sell
1 articles · Updated · stockstory.org · Jun 4
Summary
StockStory named Alphabet and Reddit its consumer-internet buys while urging investors to avoid ACV Auctions, whose shares trade around $5.70 and value it at about $1.01 billion.
The call comes as consumer-internet stocks have fallen 17.4% over the past six months, badly trailing the S&P 500's 11% gain and reflecting worries about weakening consumer purchasing power.
Alphabet won support for its search dominance, expanding margins and long-term EPS growth, with the stock trading near $357.83 at roughly 29x forward earnings.
Reddit made the buy list on 14.4% annual growth in domestic daily active visitors, 34.8% annual ARPU growth and a 30.1% free-cash-flow margin, while ACV was criticized for a 27.3% gross margin and heavy marketing spend.